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Macroeconomical assessment

Macro economical analysis considers the program of biogas technology implementation from state economy point of view. This means that the state economical policy has to take into account the effect of implementation of biogas technologies that influences he state economy as a whole.

Economical viability of biogas plants [8]
When assessing implementation of biogas technologies from the state point of view it is necessary to take into account the following effects:
• The processing of animal and human excrement in biogas systems obviously improves
sanitary conditions for the population and decreases public health costs. Considering the effect of the biogas technologies on the energy sector it has to be taken into account that biogas production will create external economy of balance of payments due to substitution of imported fuels into the Kyrgyz Republic.
• Using biofertilizer increases productivity of agricultural soils.
• Use of biogas decreases cost of agricultural production.
• Using biogas instead of traditional energy sources such as kerosene and firewood supports environmental balance and is beneficial for keeping forest plantations.
• Prices for energy produced from biogas will compete with the fuel prices on the market and will represent stable, decentralized and independent from the monopolistic prices existing on the market of the Kyrgyz Republic.
• Benefits from decentralized energy production will positively improve the security and decrease power losses of the energy system, will decrease costs for building energy transportation and communication expenses.
• Decentralized biogas systems in the rural areas increase employment rate of the local population and decrease the gap between the revenues of different population groups from different regions of the country.
• Biogas plant production based on local materials and specialists will increase state income and decrease unemployment. On the macro economical level these effects are significant enough and reveal themselves after wide dissemination of biogas technologies.

Influenced sectors
It is necessary to take into account the effects from implementation of biogas technologies in the following sectors: energy, agriculture, environment, public health and employment.


Many developing countries base their energy consumption on the traditional energy sources (wood, plants and crop residues and animal waste, as well as animal traction and human muscle power). Biomass energy use varies widely in developing countries from as little as 5% in Argentina to over 90% of the total supply of energy sources in countries like Ethiopia, Tanzania, Rwanda, Sudan and Nepal.
With increase in use of biogas the demand for traditional energy sources will fall. Therefore effect from using biogas will manifest itself in increase of benefits for environment due to lesser firewood consumption and decrease of illegal forest felling. Commercially or monetarily traded sources like petroleum, coal and natural gas on the other hand have impacts on the balance of payments and therefore influence state budget.
On one side, the effect of biogas usage will appear in energy carrier import substitution and decrease of payments for their supply. On the other side the dependence from oil, coal and gas imports will be decreased, bringing relative economic stability. Macroeconomic benefits from the biogas plans are conditional on their efficiency and stability and decreases of expenditures on distribution infrastructure and networks.

Fertilizer demand
For fertilizing all arable and grasslands and receiving stable crop yields more than 400 thousand ton of different mineral fertilizers per year are necessary. To purchase such amounts of fertilizer is financially impossible for the state and even more so for the farmers of the Kyrgyz Republic. In reality manure is used as the only fertilizer.
In Table 26 yearly manure accumulation in the Kyrgyz Republic is calculated based on the minimal amount of excrements per animal with 85% moisture content and percentage of it’s accumulation in households.
Table 26. Manure accumulation in the Kyrgyz Republic
Animals Animal count in the Republic26 Accumulated manure, % Excrements per animal per day, kg Excrements, ton per day in the Republic Excrements, ton per year in the Republic
Cattle 1 120 826 40 36 16 139,5 5891063.5
Pigs 101 918 60 4 244,603 89280.095
Birds 4 472 600 30 0,16 244,685 78360.025
Total: 16 599,2 6 058 703.62

Total demand of the Republic in manure as a organic fertilizer with application norm of 40 ton per hectare amounts to 57 million ton. As it can be seen from the table, the current animal number in the Republic gives accumulation of only around 5,5 million ton per year. Therefore the demand for organic fertilizer is satisfied at the moment only for 9,6%.

Potential of biofertilizer in the Kyrgyz Republic
Digestion of 1 ton of manure in biogas plant produces almost 1 ton of liquid organic fertilizer with application norm of 1-3 ton per hectare. Animal waste utilization will allow to obtain 6 058 703 tons of liquid fertilizer and will fully satisfy the demand of the country in fertilizers.
Together with the biofertilizer as a result of anaerobic digestion of the animal waste biogas will be produced for satisfying household energy needs and fuel demand. Overall benefits that will be received due to animal waste utilization will allow to compensate the cost of implementation of biogas plants in less than a year.
Implementation of biogas and energy saving technologies in Kyrgyzstan will support effective growth of agricultural production, increase in rural population living standards and improvement of ecological situation. Moreover, using biofertilizer decreases dependency on the outside energy and fertilizer supplies and creates external savings.

Table 27. Calculation of the characteristics of biogas plants for the Kyrgyz Republic
Characteristics Chui oblast Kyrgyz Republic without Chui oblast
Arable and grassland, hectares 300 000 1 430 700
Manure volume necessary for producing biofertilizer to satisfy the demand, ton per year 954 000 4 549 626
Necessary digester volume for utilization of animal waste in mesophilic temperature range, m3 39 205 186 970
Average cost of construction per m3 of digester $380
Civil and erection works (around 25% from construction costs) per 1 m3 of digester $95
Total biogas plant cost $18 622 375 $88 810 750
Total volume of produced biofertilizer 900 000 4 292 100
Price of 1 ton of biofertilizer $14
Benefit from biofertilizer production $12 600 000 $60 089 400
Volume of produced biogas per year, m3 45 000 000 227 480 000
Price of 1 m3 of biogas $0,15
Benefits from biogas production $6 750 000 $34 122 6000
Benefit from biogas and biofertilizer production per year $19 350 000 $94 211 400
Payback period of biogas plants in full-time operation 8 months 8 months